Answer:
$300
Explanation:
When insurance is paid in advance, the entries required are
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Amount of insurance expense as at 31 December (6 months between 1 July and 31 December)
= 6/12 * $600
= $300
The insurance expense on the annual income statement for the first year ended December 31 is $300.
Answer:
A) Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
The following table shows the accounts receivable turnover ratio of MCB and ABI:
Particulars MCB ABI
Net sales $8320 $17400
Average Accounts Receivable $720 $900
Accounts Receivable Turnover rate 11.5 19.3
B)
Day's sale outstanding = Accounts receivable / Total credit sales × 365
The following table shows the days sale outstanding of MCB and ABI:
Particulars MCB ABI
Net sales $8,320 $17,400
Average Accounts Receivable $720 $900
Day's sale outstanding 31.58 18.88
Explanation:
The total cost is $175.
The first thing that you need to do is calculate the per day cost per person.
$60 was spent on a three day trip. $60/2 = $20 per day. There were 4 adults on the trip, so $20/4 = $5. The cost of food is $5 per person per day.
On a trip with 7 adults the formula to solve the total cost is:
7 adults x 5 days x $5/day = $175.
<span>The cross-price elasticity of demand between salt and pepper is -0.50
In this example salt and pepper are Complements.
Instead, suppose salt and pepper were substitutes. If so, the the cross-price elasticity of demand between salt and peeper would be positive.</span>
